Business
Esquire Financial Holdings, Inc. Reports Second Quarter 2020 Results
Strong Performance Despite Continued Economic Uncertainty JERICHO, N.Y., July 24, 2020 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the
About this update from Esquire Financial Holdings, Inc.
[{"type":"text","content":"Strong Performance Despite Continued Economic Uncertainty\n\n\nJERICHO, N.Y., July 24, 2020 /PRNewswire/ -- Esquire Financial Holdings, Inc. (NASDAQ: ESQ) (the \"Company\"), the holding company for Esquire Bank, National Association (\"Esquire Bank\"), today announced its operating results for the second quarter of 2020. Results comparing the current quarter to the first quarter of 2020 (\"linked quarter\") include:\nNet income was relatively unchanged at $2.5 million, or $0.33 per diluted share, on a linked quarter basis and decreased 27% when compared to net income of $3.5 million, or $0.45 per diluted share, for the quarter ended June 30, 2019. Due to the significant and ongoing uncertainty surrounding the pandemic and its protracted negative impact on the economy, the Company recorded an additional provision for loan losses of $1.5 million, or $0.15 per diluted share, in line with the first quarter of 2020 COVID-19 provision. Returns on average assets and common equity were 1.20% and 8.77%, respectively, for the current quarter, and 1.89% and 14.04%, respectively, for the quarter ended June 30, 2019. The current quarter and annual returns were significantly impacted by our COVID-19 provisioning in the first and second quarter of 2020 based on the ongoing economic uncertainty surrounding the pandemic. Deposits increased $27.1 million, or 15.5% annualized, to $724.9 million on a linked quarter basis, primarily driven by our low-cost litigation market customers, with a cost of funds of 0.16% (including demand deposits). Loans totaling $593.7 million were relatively unchanged on a linked quarter basis primarily due to $25.9 million in paydowns on our attorney lines-of-credit funded by ongoing legal settlements. Average quarter-to-date loans increased $34.6 million or 24.8% annualized on a linked quarter basis. The net interest margin declined 0.24% to 4.47% on a linked quarter basis primarily due to our excess interest earning cash balances coupled with the Federal Open Market Committee's (\"FOMC\") unprecedented reduction in short-term interest rates. The Company will continue to deploy its excess liquidity in higher yielding loans over the balance of 2020. Merchant services fee income was relatively unchanged at $2.9 million on a linked quarter basis despite significant processing volume declines in certain industry verticals ...